Why Tanzania is ideal for investment
NEWYORK, USA: PRIME Minister Kassim Majaliwa has outlined ten factors that could attract investors to Tanzania, including strong diplomatic relations and stable economic policies.
Other factors are peaceful environment, the country’s strategic geographical location, market availability, youth workforce, digital infrastructure, modern communication infrastructure, broad economy, good governance and effective tax system.
Opening Tanzania- US Business and Investment Forum on Thursday at CITI headquarters in New York, USA, the Premier told members of the business community that Tanzania is the right investment destination.
Regarding the strong diplomatic ties, he noted that the bilateral relation between the two countries which has lasted for more than half a century, reflects the friendly investment environment.
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He said that for more than two decades an average economic growth stood at 7 per cent while the lowest inflation was 3.8 until December 2023.
“With the economic growth rate recorded, the International Monetary Fund predicts Tanzania to have the largest economy in East Africa come 2028.”
The PM said that over the past two decades, the average economic growth rate stood at 7 per cent, while inflation dropped to as low as 3.8 per cent by December 2023.
He further said that Tanzania’s business climate is predictable, transparent and offers protection against dispossession of assets, while investors are allowed to retain their profits after paying tax.
“Tanzania is strategically located due to its geographical position. It borders eight countries, which provides excellent business opportunities and makes it a regional trade hub,” he said.
On market availability, Majaliwa said that Tanzania has a domestic market of over 62 million people and access to more than 500 million people through regional blocs such as Sothern Africa Development Community (SADC) and East Africa Community (EAC), adding that the country also has a large youth population, providing sufficient labour force supported by investments in education.
He detailed that the government is making significant investments in digital infrastructure, a move that attracts investors in the technology sector.
Majaliwa further said that the Standard Gauge Railway project and improvements of the Air Tanzania Company Ltd and the overall investment in the transport sector are crucial steps aimed at strengthening business and transportation in the country.
The PM said Tanzania has various sectors, including agriculture, mining, tourism, manufacturing and services, all contributing to economic growth.
Regarding good governance and a fair tax system, he noted that recent reforms have improved tax procedures and reduced the tax burden on investors, while the country is committed to transparency and fairness in governance.
Meanwhile, the Prime Minister said that through the Export Processing Zones Authority (EPZA), American companies have invested in five institutions: Tanchoice, Kibidula Farm Limited, Africado Limited, Kokoa Kamili Limited and Next Gen Solawazi Limited, with a total investment of 31.51 million US dollars, creating 866 jobs.
“These companies export products valued at 28.6 million US dollars, primarily to North America, Europe, the Middle East and South Africa.
They have invested in meat processing, avocado farming and cocoa, as well as solar energy generation.
” Earlier, Minister of State in the President’s Office, Planning and Investment, Prof Kitila Mkumbo, said that Tanzania, under the leadership of President Dr Samia Suluhu Hassan, is committed to creating a conducive environment to attract investors and strengthen economic relations with development partners worldwide, including the US.
“President Samia views investors and leaders in the business sector not only as key investors but also as an important part of attracting other investors globally,” he said.
